View Full Version : apple computer stock

Ray Zee
01-25-2005, 12:40 AM
i was asked to comment on aapl because of my position on sirius. well i dont follow alot of individual stocks as big stocks are well covered by the analysts. they know more than me except may be influenced by money.
the stock trades at about 60 times earnings. if you know how i think, it cant be right to buy or hold a stock that trades at such high multiples. with what they have to sell its also hard to fathom the company is worth close to 30 billion. thats a lot of money to owe the stockholders.
it is one of the types of companies i would buy as i love ones where ceos are owners or own lots of stock or have real personal interests in making the company perform. so i am not knocking it but wouldnt buy it at this level.
if someone has a better handle on why they are worth this much, as to whats in the pipeline or future giant things to come please chime in.

Mark Heide
01-25-2005, 02:31 AM

People love this company and will lose money when the ipod goes out of fashion and something else comes along. I wouldn't hold this company or any other PC company. The competition is tough in this field. You got to ask yourself what's the future product line for this company. All products have a life cycle, and if the next one is not as big as the Ipod it will crash. Any stock that's trading at more than 20 times earning or greater are on my sell list.

The trouble with tech stocks, especially if they only sell one particular item, is that they will crash down to earth and sell for their real value. I shouldn't have to mention any examples. Just look what happened on the last tech bubble.

Good Luck


01-25-2005, 03:10 AM
Easy to say after the fact but I bought AAPL when it was selling at $14 and the company had $12 a share in cash during the last bear market. Sold way too soon. One thing that AAPL has going for it is that they are very sound financially. I agree the valuation seems excessive and I like AAPL products. As Mark pointed out, competition for these tech companies always seems to materialize. In fact there was a debate in the OOT about the virtues of the iPod vs. equivalently priced MP3 players recently. I quit playing with stocks that have 60+ PE's or are valued in the billions and aren't making one red cent awhile back If you're good at guessing where the market will take these things have at it.

01-25-2005, 09:07 AM
/images/graemlins/grin.gif apple is still very strong technically, but the heavens say sell..


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Ray Zee
01-25-2005, 04:42 PM
finally after all these years your stars are starting to come around to my way of thinking. /images/graemlins/smile.gif /images/graemlins/frown.gif /images/graemlins/smile.gif 0-) /images/graemlins/smile.gif